Contracting to Sell House without Buying It

[Bobby Holley]

I'm preparing to invest in a SF home that is off market. The owner-whom I know personally-is 70 years old and has run into some difficult financial times. He and his wife are very eager to get their huge house sold and move into a smaller place but they don't have the funds or desire to sell it on the open market. Although I qualify for a portfolio loan at 80% LTV, I don't have the necessary downpayment to fund the purchase of the home. I know there are a number of options available, including hard money, but I had a seasoned real estate investor recently tell me to pitch the seller on contracting to do the necessary repairs on their home to prepare it for market, then sell the home outright without ever buying their home. Is this a legitimate strategy that anybody on BP has used before?